FG To Save $610 Million With Crude Sales To Dangote Refinery, Others – FIRS Boss

By providing crude oil to the Dangote refinery and other nearby refineries in naira, the federal government would save monthly spending on gasoline imports by an astounding $610 million, according to Zach Adedeji, the Chairman of the Federal Inland Revenue Service (FIRS).

Adedeji made this declaration on Monday after the Federal Executive Council (FEC) approved the denominator of local refinery trade to be naira effective immediately.

According to Adedeji, fuelling imports costs around $660 million a month, or roughly $7.92 billion annually.

He said this new deal will reduce the pressure on foreign exchange, as the government will save the total of $610 million monthly and approximately $7.92 billion annually.

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“With this approval today through FEC led by Mr President, this has been reduced by a minimum of 90%. Because of what we have today, the transaction will now be down in our local currency not only to Dangote Refinery but to all local refineries for all our local consumption and this will stabilize the pump price.

“This will also make economic stability a reality because there will no longer rely on the fluctuation in forex.

“Just to be specific, in terms of benefits, one which is major is the reduction in foreign exchange pressure. We utilize $660 million per month, totalling $7.92 billion annually.

“With the new approval that we have, this will reduce to a maximum of $50 million per month which is annualized to be only $600 million. This is a total reduction of 94% and saving us $7.32 billion,” the FIRS boss said.